Lexa,a Single Taxpayer,worked as an Employee During the First Half

question 138

Essay

Lexa,a single taxpayer,worked as an employee during the first half of the year earning $65,000 of salary.Lexa's employer withheld $4,030 of Social Security tax,$943 of Medicare tax,and $0 of .9 percent additional Medicare tax.In the second half of the year,she was self-employed and she reported $180,000 of self-employment income on her Schedule C.What amount of self-employment taxes and.9 percent additional Medicare tax is Lexa required to pay on her self-employment income?

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Definitions:

Right-To-Work Law

Legislation that prohibits union security agreements between companies and workers' unions, allowing individuals in the workforce to work without being compelled to join a union.

Union Shop

A place of employment where nonunion workers may be employed for a trial period of not more than 30 days, after which the nonunion workers must join the union or be discharged.

Closed Shop

A place of employment in which the employer, by agreement, hires only union members in good standing.

Public Employees

Individuals employed by government entities at the federal, state, or local level.